Heineken Finds Help South of the Border

Heineken’s namesake beer was the first foreign brew to come to the U.S. after Prohibition ended in 1933, and being first helped fuel its success for decades. The Dutch company ceded its No. 1 import crown to Grupo Modelo’s Corona in the 1990s as more youthful drinkers were drawn to the lighter taste and fun lifestyle associated with the Mexican brand. Now Heineken is counting on its own champion from south of the border to bolster its U.S. standing: Dos Equis. The fast-growing Mexican beer, which Heineken picked up as part of its €5.4 billion ($7 billion) acquisition of Fomento Económico Mexicano’s beer brands in 2010, is key to plans to revive its fortunes in North America. Dos Equis is “our shining star” in the U.S., says John Nicolson, head of the Americas unit. “We’ve got to be young. We don’t want to be part of the past.”

Sales of Dos Equis, named for the two Xs on its label, soared 17 percent in the third quarter, compared with the Heineken brand’s 1 percent sales decline and industry-wide drop of about 2 percent, according to research by Sanford C. Bernstein analyst Trevor Stirling. At the core of Dos Equis’s success is effective marketing, he says. That includes its “Most Interesting Man in the World” ad campaign, featuring tales of one worldly man’s experiences—and the catchphrase “I don’t always drink beer, but when I do, I prefer Dos Equis.”